Microsoft is pouring $17.5 billion into India — its largest investment in Asia — to boost the country’s AI infrastructure and diffusion, the company announced Tuesday.
The funding, planned over four years between 2026 and 2029, comes after an earlier $3 billion commitment announced earlier this year.
Microsoft’s aim is to help advance India’s cloud and AI infrastructure, skilling and ongoing operations. The tech giant said the partnership will help India make the leap from “digital public infrastructure to AI public infrastructure in the coming decade,” toward “a future that is more equitable and uniquely Indian in its scale and impact.”
Microsoft CEO Satya Nadella is in the country this month as part of a multi-city “India AI” tour. He met with Prime Minister Narendra Modi in New Delhi on Tuesday and will deliver a keynote address on Wednesday: “Leading in the New Age of AI.”
The investment will target three primary areas:
- Scale: A key priority is building hyperscale infrastructure to enable AI adoption in India. Microsoft said significant progress is being made at the India South Central cloud region, based in Hyderabad, that is set to go live in mid-2026. Microsoft will also continue to expand its three existing operational data center regions in Chennai, Hyderabad and Pune.
- Skills: Microsoft is doubling its January commitment to equip 20 million Indians with essential AI skills by 2030. The company said it has already trained 5.6 million people since January, and its programs have helped more than 125,000 people gain work or entrepreneurial opportunities.
- Sovereignty: Microsoft is introducing Sovereign Public Cloud and Sovereign Private Cloud for Indian customers, designed to give Indian organizations more control over data, compliance, and operational sovereignty. In security terms, these offerings will address data residency, regulatory compliance, governance, and operational isolation.
Microsoft also announced that 310 million informal workers India will benefit from advanced AI capabilities being integrated into two key digital public platforms of the Ministry of Labour and Employment — e-Shram and the National Career Service.
Microsoft employs 22,000 people across Bengaluru, Hyderabad, Pune, Gurugram, Noida and other cities, representing numerous company business lines.
Elsewhere on Tuesday, Microsoft President Brad Smith announced new commitments to Canada, adding $5.4 billion over the next two years to its continued investment in building out digital and AI infrastructure in the country.
Smith highlighted many of the same goals the company outlined for India, including boosting skills training and digital sovereignty in Canada.
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